All posts by Melanie Venis

Everything Happens For A Reason

We all know the saying “everything happens for a reason”, I’d like to share with you the latest scenario where these 5 little words came into their own.

Peter & I exchanged on a bungalow that we are buying with Glenn, through his Partnership Programme, on the 5th November 2014, with completion scheduled for Wednesday 3rd December 2014.

Obviously, working in the office with Helen, I get to know straight away when Partnership deals complete, either on purchase or sale, so thought it a bit odd when by 3pm ours still hadn’t done so.The monies had definitely left the account, but had yet to show up in the solicitors. By 4pm it was decided that completion would be rescheduled for the following day.

What I hadn’t realised at the time, was that at midnight on Wednesday 3rd, George Osborne’s autumn statement changed the way stamp duty works!!

We did complete on Thursday 4th & instead of paying £1850 stamp duty, 1% of our purchase price of £185,000, we only had to pay 2% on the difference between £125,000 and £185,000 (£1200) Giving us a saving of £650!

Illustrating that, yes, everything does happen for a reason!

Fast forward a few months and our buyers will benefit greatly from this reform. With an end valuation of £285,000, they will save £4,300, paying just £4,250 instead of £8550.

Purchase Price Band   % Rate
Up To 125,000   0
Above 125,000 & up to 250,00   2
Above 250,000 & up to 925,000   5
Above 925,000 & up to 1,500,000   10
Above 1,500,000+   12

This new graduated rate means purchases of up to £937,500 will save on SDLT, but anything over this price will incur higher tax.



There is however a considerable hike for those who are buying property worth more than £2m. The old system would have the stamp duty would have been 7%, now, those buying at this end of the market will pay £50,000 more under the new policy.

For now, we’ll stick with our bungalows!